diff --git a/api/fma/v1alpha1/launcherconfig_types.go b/api/fma/v1alpha1/launcherconfig_types.go
index 5236d229..a5901cb1 100644
--- a/api/fma/v1alpha1/launcherconfig_types.go
+++ b/api/fma/v1alpha1/launcherconfig_types.go
@@ -21,11 +21,34 @@ import (
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 )
 
+// EmbeddedObjectMeta holds the subset of metav1.ObjectMeta fields that
+// we want in the CRD schema, so that strict decoding accepts them.
+type EmbeddedObjectMeta struct {
+	// Labels for organizing and categorizing objects.
+	// +optional
+	Labels map[string]string `json:"labels,omitempty"`
+
+	// Annotations for storing arbitrary non-identifying metadata.
+	// +optional
+	Annotations map[string]string `json:"annotations,omitempty"`
+}
+
+// EmbeddedPodTemplateSpec is a PodTemplateSpec whose metadata fields
+// are explicitly declared so that the CRD schema admits them.
+type EmbeddedPodTemplateSpec struct {
+	// +optional
+	Metadata EmbeddedObjectMeta `json:"metadata,omitempty"`
+
+	// Spec defines the behavior of pods created from this template.
+	// +optional
+	Spec corev1.PodSpec `json:"spec,omitempty"`
+}
+
 // LauncherConfigSpec defines the configuration to manage the nominal server-providing pod definition.
 type LauncherConfigSpec struct {
 	// PodTemplate defines the pod specification for the server-providing pod.
 	// +optional
-	PodTemplate corev1.PodTemplateSpec `json:"podTemplate,omitempty"`
+	PodTemplate EmbeddedPodTemplateSpec `json:"podTemplate,omitempty"`
 
 	// MaxSleepingInstances is the maximum number of sleeping inference engine instances allowed per launcher pod.
 	// +kubebuilder:validation:Required
diff --git a/api/fma/v1alpha1/zz_generated.deepcopy.go b/api/fma/v1alpha1/zz_generated.deepcopy.go
index aaffe9af..ab5ceec6 100644
--- a/api/fma/v1alpha1/zz_generated.deepcopy.go
+++ b/api/fma/v1alpha1/zz_generated.deepcopy.go
@@ -39,6 +39,52 @@ func (in *CountForLauncher) DeepCopy() *CountForLauncher {
 	return out
 }
 
+// DeepCopyInto is an autogenerated deepcopy function, copying the receiver, writing into out. in must be non-nil.
+func (in *EmbeddedObjectMeta) DeepCopyInto(out *EmbeddedObjectMeta) {
+	*out = *in
+	if in.Labels != nil {
+		in, out := &in.Labels, &out.Labels
+		*out = make(map[string]string, len(*in))
+		for key, val := range *in {
+			(*out)[key] = val
+		}
+	}
+	if in.Annotations != nil {
+		in, out := &in.Annotations, &out.Annotations
+		*out = make(map[string]string, len(*in))
+		for key, val := range *in {
+			(*out)[key] = val
+		}
+	}
+}
+
+// DeepCopy is an autogenerated deepcopy function, copying the receiver, creating a new EmbeddedObjectMeta.
+func (in *EmbeddedObjectMeta) DeepCopy() *EmbeddedObjectMeta {
+	if in == nil {
+		return nil
+	}
+	out := new(EmbeddedObjectMeta)
+	in.DeepCopyInto(out)
+	return out
+}
+
+// DeepCopyInto is an autogenerated deepcopy function, copying the receiver, writing into out. in must be non-nil.
+func (in *EmbeddedPodTemplateSpec) DeepCopyInto(out *EmbeddedPodTemplateSpec) {
+	*out = *in
+	in.Metadata.DeepCopyInto(&out.Metadata)
+	in.Spec.DeepCopyInto(&out.Spec)
+}
+
+// DeepCopy is an autogenerated deepcopy function, copying the receiver, creating a new EmbeddedPodTemplateSpec.
+func (in *EmbeddedPodTemplateSpec) DeepCopy() *EmbeddedPodTemplateSpec {
+	if in == nil {
+		return nil
+	}
+	out := new(EmbeddedPodTemplateSpec)
+	in.DeepCopyInto(out)
+	return out
+}
+
 // DeepCopyInto is an autogenerated deepcopy function, copying the receiver, writing into out. in must be non-nil.
 func (in *EnhancedNodeSelector) DeepCopyInto(out *EnhancedNodeSelector) {
 	*out = *in
diff --git a/config/crd/fma.llm-d.ai_launcherconfigs.yaml b/config/crd/fma.llm-d.ai_launcherconfigs.yaml
index 66bfb6a5..fb1eaff1 100644
--- a/config/crd/fma.llm-d.ai_launcherconfigs.yaml
+++ b/config/crd/fma.llm-d.ai_launcherconfigs.yaml
@@ -54,13 +54,24 @@ spec:
                 properties:
                   metadata:
                     description: |-
-                      Standard object's metadata.
-                      More info: https://git.k8s.io/community/contributors/devel/sig-architecture/api-conventions.md#metadata
+                      EmbeddedObjectMeta holds the subset of metav1.ObjectMeta fields that
+                      we want in the CRD schema, so that strict decoding accepts them.
+                    properties:
+                      annotations:
+                        additionalProperties:
+                          type: string
+                        description: Annotations for storing arbitrary non-identifying
+                          metadata.
+                        type: object
+                      labels:
+                        additionalProperties:
+                          type: string
+                        description: Labels for organizing and categorizing objects.
+                        type: object
                     type: object
                   spec:
-                    description: |-
-                      Specification of the desired behavior of the pod.
-                      More info: https://git.k8s.io/community/contributors/devel/sig-architecture/api-conventions.md#spec-and-status
+                    description: Spec defines the behavior of pods created from this
+                      template.
                     properties:
                       activeDeadlineSeconds:
                         description: |-
diff --git a/docs/cluster-sharing.md b/docs/cluster-sharing.md
index 76783190..f0d6fd18 100644
--- a/docs/cluster-sharing.md
+++ b/docs/cluster-sharing.md
@@ -29,10 +29,13 @@ object.
 
 (One design goal is to minimize chores for administrators of shared clusters.)
 
-- As development progresses, we never change the definitions in an
-  existing version of the `fma.llm-d.ai` API group; we only add new
+- As development progresses, we almost never change the definitions in
+  an existing version of the `fma.llm-d.ai` API group; we only add new
   versions. Old versions may be deleted only once we are sure there is
   no further dev/test activity using them.
+  We can make a change in an existing definition if the change does not
+  affect any current usage (e.g., add a field, change an optional thing
+  that does not appear in any existing YAML).
 
 - During development of a PR that adds a version of the API group,
   successive revisions of the PR's head branch can change the
diff --git a/pkg/controller/utils/pod-helper.go b/pkg/controller/utils/pod-helper.go
index e8dec125..37a9faaf 100644
--- a/pkg/controller/utils/pod-helper.go
+++ b/pkg/controller/utils/pod-helper.go
@@ -22,13 +22,16 @@ import (
 	"encoding/json"
 	"errors"
 	"fmt"
+	"maps"
 	"regexp"
 	"slices"
 
 	corev1 "k8s.io/api/core/v1"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	"k8s.io/apimachinery/pkg/api/resource"
 	"k8s.io/apimachinery/pkg/util/intstr"
 
+	v1alpha1 "github.com/llm-d-incubation/llm-d-fast-model-actuation/api/fma/v1alpha1"
 	"github.com/llm-d-incubation/llm-d-fast-model-actuation/pkg/api"
 	"github.com/llm-d-incubation/llm-d-fast-model-actuation/pkg/controller/common"
 )
@@ -141,10 +144,13 @@ func IsPodReady(pod *corev1.Pod) bool {
 
 // BuildLauncherPodFromTemplate creates a launcher pod from a LauncherConfig object's
 // Spec.PodTemplate and assigns the built launcher pod to a node
-func BuildLauncherPodFromTemplate(template corev1.PodTemplateSpec, ns, nodeName, launcherConfigName string) (*corev1.Pod, error) {
+func BuildLauncherPodFromTemplate(template v1alpha1.EmbeddedPodTemplateSpec, ns, nodeName, launcherConfigName string) (*corev1.Pod, error) {
 	pod := &corev1.Pod{
-		ObjectMeta: template.ObjectMeta,
-		Spec:       *DeIndividualize(template.Spec.DeepCopy()),
+		ObjectMeta: metav1.ObjectMeta{
+			Labels:      maps.Clone(template.Metadata.Labels),
+			Annotations: maps.Clone(template.Metadata.Annotations),
+		},
+		Spec: *DeIndividualize(template.Spec.DeepCopy()),
 	}
 	pod.Namespace = ns
 	pod.GenerateName = "launcher-"
diff --git a/pkg/generated/applyconfiguration/fma/v1alpha1/embeddedobjectmeta.go b/pkg/generated/applyconfiguration/fma/v1alpha1/embeddedobjectmeta.go
new file mode 100644
index 00000000..66c6a8b7
--- /dev/null
+++ b/pkg/generated/applyconfiguration/fma/v1alpha1/embeddedobjectmeta.go
@@ -0,0 +1,59 @@
+/*
+Copyright 2025 The llm-d Authors.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+	http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+// Code generated by applyconfiguration-gen. DO NOT EDIT.
+
+package v1alpha1
+
+// EmbeddedObjectMetaApplyConfiguration represents a declarative configuration of the EmbeddedObjectMeta type for use
+// with apply.
+type EmbeddedObjectMetaApplyConfiguration struct {
+	Labels      map[string]string `json:"labels,omitempty"`
+	Annotations map[string]string `json:"annotations,omitempty"`
+}
+
+// EmbeddedObjectMetaApplyConfiguration constructs a declarative configuration of the EmbeddedObjectMeta type for use with
+// apply.
+func EmbeddedObjectMeta() *EmbeddedObjectMetaApplyConfiguration {
+	return &EmbeddedObjectMetaApplyConfiguration{}
+}
+
+// WithLabels puts the entries into the Labels field in the declarative configuration
+// and returns the receiver, so that objects can be build by chaining "With" function invocations.
+// If called multiple times, the entries provided by each call will be put on the Labels field,
+// overwriting an existing map entries in Labels field with the same key.
+func (b *EmbeddedObjectMetaApplyConfiguration) WithLabels(entries map[string]string) *EmbeddedObjectMetaApplyConfiguration {
+	if b.Labels == nil && len(entries) > 0 {
+		b.Labels = make(map[string]string, len(entries))
+	}
+	for k, v := range entries {
+		b.Labels[k] = v
+	}
+	return b
+}
+
+// WithAnnotations puts the entries into the Annotations field in the declarative configuration
+// and returns the receiver, so that objects can be build by chaining "With" function invocations.
+// If called multiple times, the entries provided by each call will be put on the Annotations field,
+// overwriting an existing map entries in Annotations field with the same key.
+func (b *EmbeddedObjectMetaApplyConfiguration) WithAnnotations(entries map[string]string) *EmbeddedObjectMetaApplyConfiguration {
+	if b.Annotations == nil && len(entries) > 0 {
+		b.Annotations = make(map[string]string, len(entries))
+	}
+	for k, v := range entries {
+		b.Annotations[k] = v
+	}
+	return b
+}
diff --git a/pkg/generated/applyconfiguration/fma/v1alpha1/embeddedpodtemplatespec.go b/pkg/generated/applyconfiguration/fma/v1alpha1/embeddedpodtemplatespec.go
new file mode 100644
index 00000000..0c10fe14
--- /dev/null
+++ b/pkg/generated/applyconfiguration/fma/v1alpha1/embeddedpodtemplatespec.go
@@ -0,0 +1,51 @@
+/*
+Copyright 2025 The llm-d Authors.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+	http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+// Code generated by applyconfiguration-gen. DO NOT EDIT.
+
+package v1alpha1
+
+import (
+	v1 "k8s.io/api/core/v1"
+)
+
+// EmbeddedPodTemplateSpecApplyConfiguration represents a declarative configuration of the EmbeddedPodTemplateSpec type for use
+// with apply.
+type EmbeddedPodTemplateSpecApplyConfiguration struct {
+	Metadata *EmbeddedObjectMetaApplyConfiguration `json:"metadata,omitempty"`
+	Spec     *v1.PodSpec                           `json:"spec,omitempty"`
+}
+
+// EmbeddedPodTemplateSpecApplyConfiguration constructs a declarative configuration of the EmbeddedPodTemplateSpec type for use with
+// apply.
+func EmbeddedPodTemplateSpec() *EmbeddedPodTemplateSpecApplyConfiguration {
+	return &EmbeddedPodTemplateSpecApplyConfiguration{}
+}
+
+// WithMetadata sets the Metadata field in the declarative configuration to the given value
+// and returns the receiver, so that objects can be built by chaining "With" function invocations.
+// If called multiple times, the Metadata field is set to the value of the last call.
+func (b *EmbeddedPodTemplateSpecApplyConfiguration) WithMetadata(value *EmbeddedObjectMetaApplyConfiguration) *EmbeddedPodTemplateSpecApplyConfiguration {
+	b.Metadata = value
+	return b
+}
+
+// WithSpec sets the Spec field in the declarative configuration to the given value
+// and returns the receiver, so that objects can be built by chaining "With" function invocations.
+// If called multiple times, the Spec field is set to the value of the last call.
+func (b *EmbeddedPodTemplateSpecApplyConfiguration) WithSpec(value v1.PodSpec) *EmbeddedPodTemplateSpecApplyConfiguration {
+	b.Spec = &value
+	return b
+}
diff --git a/pkg/generated/applyconfiguration/fma/v1alpha1/launcherconfigspec.go b/pkg/generated/applyconfiguration/fma/v1alpha1/launcherconfigspec.go
index 85d0d6e0..200e334d 100644
--- a/pkg/generated/applyconfiguration/fma/v1alpha1/launcherconfigspec.go
+++ b/pkg/generated/applyconfiguration/fma/v1alpha1/launcherconfigspec.go
@@ -17,15 +17,11 @@ limitations under the License.
 
 package v1alpha1
 
-import (
-	v1 "k8s.io/api/core/v1"
-)
-
 // LauncherConfigSpecApplyConfiguration represents a declarative configuration of the LauncherConfigSpec type for use
 // with apply.
 type LauncherConfigSpecApplyConfiguration struct {
-	PodTemplate          *v1.PodTemplateSpec `json:"podTemplate,omitempty"`
-	MaxSleepingInstances *int32              `json:"maxSleepingInstances,omitempty"`
+	PodTemplate          *EmbeddedPodTemplateSpecApplyConfiguration `json:"podTemplate,omitempty"`
+	MaxSleepingInstances *int32                                     `json:"maxSleepingInstances,omitempty"`
 }
 
 // LauncherConfigSpecApplyConfiguration constructs a declarative configuration of the LauncherConfigSpec type for use with
@@ -37,8 +33,8 @@ func LauncherConfigSpec() *LauncherConfigSpecApplyConfiguration {
 // WithPodTemplate sets the PodTemplate field in the declarative configuration to the given value
 // and returns the receiver, so that objects can be built by chaining "With" function invocations.
 // If called multiple times, the PodTemplate field is set to the value of the last call.
-func (b *LauncherConfigSpecApplyConfiguration) WithPodTemplate(value v1.PodTemplateSpec) *LauncherConfigSpecApplyConfiguration {
-	b.PodTemplate = &value
+func (b *LauncherConfigSpecApplyConfiguration) WithPodTemplate(value *EmbeddedPodTemplateSpecApplyConfiguration) *LauncherConfigSpecApplyConfiguration {
+	b.PodTemplate = value
 	return b
 }
 
diff --git a/pkg/generated/applyconfiguration/utils.go b/pkg/generated/applyconfiguration/utils.go
index 8d1dee3e..0db1709b 100644
--- a/pkg/generated/applyconfiguration/utils.go
+++ b/pkg/generated/applyconfiguration/utils.go
@@ -33,6 +33,10 @@ func ForKind(kind schema.GroupVersionKind) interface{} {
 	// Group=fma.llm-d.ai, Version=v1alpha1
 	case v1alpha1.SchemeGroupVersion.WithKind("CountForLauncher"):
 		return &fmav1alpha1.CountForLauncherApplyConfiguration{}
+	case v1alpha1.SchemeGroupVersion.WithKind("EmbeddedObjectMeta"):
+		return &fmav1alpha1.EmbeddedObjectMetaApplyConfiguration{}
+	case v1alpha1.SchemeGroupVersion.WithKind("EmbeddedPodTemplateSpec"):
+		return &fmav1alpha1.EmbeddedPodTemplateSpecApplyConfiguration{}
 	case v1alpha1.SchemeGroupVersion.WithKind("EnhancedNodeSelector"):
 		return &fmav1alpha1.EnhancedNodeSelectorApplyConfiguration{}
 	case v1alpha1.SchemeGroupVersion.WithKind("InferenceServerConfig"):
diff --git a/test/e2e/deploy_fma.sh b/test/e2e/deploy_fma.sh
index fe6c90c6..85c6c421 100755
--- a/test/e2e/deploy_fma.sh
+++ b/test/e2e/deploy_fma.sh
@@ -89,8 +89,15 @@ CRD_NAMES=""
 for crd_file in config/crd/*.yaml; do
     crd_name=$(kubectl apply --dry-run=client -f "$crd_file" -o jsonpath='{.metadata.name}')
     CRD_NAMES="$CRD_NAMES $crd_name"
-    if kubectl get crd "$crd_name" &>/dev/null; then
-        echo "  CRD $crd_name already exists, skipping"
+    live_spec=$(kubectl get crd "$crd_name" -o jsonpath='{.spec}' 2>/dev/null) || live_spec=""
+    if [ -n "$live_spec" ]; then
+        desired_spec=$(kubectl apply --dry-run=client -f "$crd_file" -o jsonpath='{.spec}')
+        if [ "$live_spec" = "$desired_spec" ]; then
+            echo "  CRD $crd_name already exists with matching spec, skipping"
+        else
+            echo "  CRD $crd_name exists but spec differs, updating"
+            kubectl apply --server-side -f "$crd_file"
+        fi
     else
         echo "  Applying $crd_file ($crd_name)"
         kubectl apply --server-side -f "$crd_file"
@@ -178,7 +185,7 @@ helm upgrade --install "$FMA_CHART_INSTANCE_NAME" charts/fma-controllers \
 
 step "Wait for controllers to be ready"
 
-kubectl wait --for=condition=available --timeout=120s \
+kubectl wait --for=condition=available --timeout=180s \
     deployment "${FMA_CHART_INSTANCE_NAME}-dual-pods-controller" -n "$FMA_NAMESPACE"
 kubectl wait --for=condition=available --timeout=120s \
     deployment "${FMA_CHART_INSTANCE_NAME}-launcher-populator" -n "$FMA_NAMESPACE"